September 2009 Phoenix home sales keep pace with August 2009 - foreclosures still dominate
Of the almost 31,000 Phoenix homes for sale, 7,942 homes were sold in the metropolitan Phoenix area in September 2009. That's 97 homes less than the total sold in August. A majority were Phoenix foreclosure type properties. 2009 has been a very good year for homes sales in the Valley of the Sun. At current sales levels, I expect to see approximately 90,000 homes sold in the Phoenix area for 2009, making it the third best sales year for housing in the last decade. As of this writing, 72,451 homes have been sold in and around Phoenix. The only two years with more home sales were the “boom” years of 2004 in 2005 -- with 98,100 and 104,000 sales respectively. The next closest year was 2003 with 79,500 sales.
It seems clear that the Phoenix foreclosure market, the $8,000 tax credit, low interest rates, and the overall affordability of Phoenix area homes has done much to stimulate sales. This post is not about whether or not the $8,000 tax credit is spoiling the Americans into a feeling of entitlement. It is simply reporting on the sales trends in the Phoenix area and confirming that local residents have cast a vote of confidence in returning to the home market. Having said that, it must also be noted that some figures indicate that approximately 30% of all Phoenix home sales in 2009 were from investors.
Foreclosures continue to dominate Phoenix area sales
67% of all home sales in the Phoenix area during September 2009 were foreclosures, foreclosures being either REO property (bank owned homes) or real estate short sales. This has been a trend in the Phoenix area for the last year.
October 2008 was recorded as the first month that foreclosure sales exceeded 50% of total sales. Foreclosure sales increased from 51.4% in October to a high of 75.9% in March 2009. The decrease in REO property (bank owned homes) has been a significant factor in the gradual reduction of foreclosure sales beginning in April 2009. My post in the next few days will show that Phoenix foreclosures are increasingly being affected by real estate short sales, a trend barely noticeable 12-18 months ago. Short sales deserve a look if you are considering making a purchase from the inventory of Phoenix homes for sale.
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